Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard cost per unit Actual costs used in production of 12,000 units Direct 1.80 feet at $3.00 per 24,000 feet purchased at a total cost of materials foot $69,900, used only 21,000 feet in production Direct 0.90 hours at $18.00 11,400 hours at $17.40 per hour labor per hour Variable 0.90 hours at $5.00 11,400 hours at a total cost of $62,600 overhead per hour Required: 1. Compute the total standard cost per unit and total actual cost per unit. How much is the difference between the actual unit costs and standard cost? 2. Compute the following variances for May: Materials quantity and price variances. а. b. Labor efficiency and rate variances. Variable overhead efficiency and rate variances. с. 3. Discuss the main reasons for the difference between the actual unit costs and standard cost you computed in (1).

Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard cost per unit Actual costs used in production of 12,000 units Direct 1.80 feet at $3.00 per 24,000 feet purchased at a total cost of materials foot $69,900, used only 21,000 feet in production Direct 0.90 hours at $18.00 11,400 hours at $17.40 per hour labor per hour Variable 0.90 hours at $5.00 11,400 hours at a total cost of $62,600 overhead per hour Required: 1. Compute the total standard cost per unit and total actual cost per unit. How much is the difference between the actual unit costs and standard cost? 2. Compute the following variances for May: Materials quantity and price variances. а. b. Labor efficiency and rate variances. Variable overhead efficiency and rate variances. с. 3. Discuss the main reasons for the difference between the actual unit costs and standard cost you computed in (1).

Name: Landers Company manufactures a number of products. The standards rela
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Description: Landers Company manufactures a number of products. The standards relating to oneof these products are shown below, along with actual cost data for May.Standard cost per unitActual costs used in production of 12,000 unitsDirect1.80 feet at $3.00 per2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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